Macroeconomics Assignment | Homework For You

1) Assume there is a simple economy where people consume only 2 goods, food and clothing. Further assume that the market basket of goods used to compute the CPI consists of 100 units of food and 20 units of clothing.
Food    Clothing
2004 price per unit    $8    $20
2005 price per unit    $12    $40Homework For You
a.    Compute the percentage changes in the price of food and the percentage change in the price of clothing between 2004 and 2005.
b.    Calculate the percentage change in the CPI between 2004 and 2005.
c.    Do you think the CPI price changes affect all consumers in the economy to the same extent? Explain.

2) Calculate how much each of the following items is worth in terms of today’s dollars using 180 as the price index for today.
a.    In 1925, the CPI was 18 and the price of a movie ticket was $0.30.
b.    In 1930, the CPI was 14 and a cook earned $20 a week.
c.    In 1940, the CPI was 16 and a gallon of gas cost $0.20. Get Economics homework help today

Calculate your paper price
Pages (550 words)
Approximate price: -

Why Choose Us

Quality Papers


Professional Academic Writers


Affordable Prices


On-Time delivery


100% Originality


Customer Support 24/7


Try it now!

Calculate the price of your order

You will get a personal manager and a discount.
We'll send you the first draft for approval by at
Total price:

How it works?

Follow these simple steps to get your paper done

Place your order


Proceed with the payment

Choose the payment system that suits you most.

Receive the final file


Our Services



Essay Writing Services



Admission and Business Papers



Editing and Proofreading



Technical papers
